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A.I. Is Getting Expensive, Even For Google

Wall Street Millennial | June 12, 2026



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In this video we analyze Google’s recently announced $85 billion stock offering

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#wallstreetmillennial

0:00 – 2:45 Intro
2:46 – 5:50 Google Stock Offering
5:51 – 9:03 Google AI Strategy
9:04 – 15:29 Anthropic
15:30 Google’s Gamble

Written by Wall Street Millennial

Comments

This post currently has 40 comments.

  1. @daShadoSage

    June 12, 2026 at 7:05 pm

    Idkif there's a little bit of bias or if you missed your research but there are a few things you're missing here, notably the advertising part. Of course AI is going to be applied to advertising. You don't think they have skunkworks working on it?

    Meta is one of the few AI companies that has turned AI into a margin and revenue-generating machine indirectly. This means they had a huge uplift in advertisement margins and revenue because of AI. I really really doubt that Google is not going to do the same.

    One other point, a small one: YouTube actually just raised the prices to $15.99 a month.

  2. @Johnny-fw9xj

    June 12, 2026 at 7:05 pm

    It'll work flawlessly as long as there is fresh money pouring in. Bernie Madoff ran his ponzi scheme very succesfully for decades and decades and decades, which is astonishing when you think about it. But nevertheless the money eventually dried up. It always does.

  3. @antonio_carvalho

    June 12, 2026 at 7:05 pm

    Is the stock issue a sign of uncertainty in the AI strategy from Google (they don't need to pay debt back in the future)? Or a sign that they see their stock price as higher than it should be (let's ride the market enthusiasm)?

  4. @calvink.4511

    June 12, 2026 at 7:05 pm

    I think they are selling not because they need it but because AI is getting basically free money, even less profitable companies are getting money so they just trying to get a free slice of the pie

  5. @London-m4g

    June 12, 2026 at 7:05 pm

    The very last part of the video is the nub. The very worst case scenario is AI proves a total nothing burger. Google would have wasted up to $500bn on DCs and have about $100bn debt. The waste is lost opportunity, the debt is less than a year's pre AI mania profit. Google would still have a lead in quantum computing and Deep Mind output on non-slop AI (novel pharma and materials) etc. it wouldn't be a $4tn firm but likely still a $3tn firm.

  6. @Ikbeneengeit

    June 12, 2026 at 7:05 pm

    It's a smart move by Google, suck the easy cheap money out of the market while their valuation is high, and simultaneously disadvantage their cash-starved competitors like Anthropic etc

  7. @J0sI-I

    June 12, 2026 at 7:05 pm

    Your numbers are wrong at the end. Not 2% but 0.02% share dilution. 4.3 trillion is way way bigger than 85 billion. And I don’t think they need the cash, they just want to take it off the table for others

  8. @pyotrberia9741

    June 12, 2026 at 7:05 pm

    I work for one of the companies spending a fortune on AI. Management refuses to listen when we point out the technology's limitations because their reputation is heavily invested in the idea that AI will succeed. So we continue marching forward to the big bubble burst.

  9. @Nick-dg3pd

    June 12, 2026 at 7:05 pm

    Anthropic is weird. I doubt most enterprise users will continue token maxing and instead begin limiting token usage until they have a legit way of measuring/estimating what they actually get out of a token

  10. @NielMalan

    June 12, 2026 at 7:05 pm

    A first I was shocked, but the explanation at the end makes sense. Of course Alphabet is pandering to investors, but they're also making those investors carry the risk.

  11. @DarkBloodbane

    June 12, 2026 at 7:05 pm

    It's about time we hear AI expense from other AI companies. If OpenAI is losing money for AI, it's not surprise if other companies are in same state.
    Though the real question is what would happen next?

  12. @samphan74

    June 12, 2026 at 7:05 pm

    "Big tech" is shrinking and they know it so they are trying to grab $$ while they think people are still impressed with them. Don't let them get away with it. China does technology better and cheaper and without the attitude.

  13. @JohnnyBean78

    June 12, 2026 at 7:05 pm

    It seems Guugle is now spending more than they can get and like they are living paycheck to paycheck if they're doing this raise of capital. Guugle has also gone to sht over the years and now they are begging for money. Pretty ridiculous! And we don't need more ai data centers. WTF!

  14. @UnitedWeStand-g7u

    June 12, 2026 at 7:05 pm

    Meanwhile in China, DeepSeek AI is thriving at a fraction of the capital costs associated with US based AI companies, I suspect it’s because circular financing is not allowed in China.

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